What is an ARN Number in a Mutual Fund?

In FY 2025, India has seen a 40% surge in mutual fund commission payouts, which sum up to INR 21,000 crore. It shows that investors still rely on distributors for mutual fund-related guidance.

However, to ensure distributor authenticity, informed financial decisions and fraud prevention, the ARN number in a mutual fund is mandatory.

Read this blog to learn in detail about how ARN works, its format, its benefits and more.

What is the Meaning of an ARN Number?

When you are investing in mutual funds, you must notice a regular scheme in mutual fund investments.

As of FY 2024 2025, about 12.95 crore folios are created in regular plans, where a certified mutual fund distributor acts as a middleman between you and an Asset Management company (AMC).

The Application Reference Number (ARN) is directly related to them, and here is a detailed breakdown:

1. The Association of Mutual Funds in India, or AMFI, issues the ARN for certified mutual fund distributors in India.
2. Such an individual clears a certification exam and gets this number. The ARN number in a mutual fund is of crucial importance as it certifies that a fund distributor is legally allowed to guide you for informed mutual fund investment decisions.
3. As of the last financial year, the AMFI declares adding more than 29,435 ARN holders through proper examination. They rightfully help you to make informed financial decisions.

What is an ARN code in a Mutual Fund?

If you choose a regular mutual fund investment plan, the ARN number in a mutual fund not only represents a certified distributor but also helps with the following:

1. It helps instil quality standards in the mutual fund industry, ensures accountability, protects investors from fraudsters and helps track investments.
2. You can look for the ARN code of your distributor from the Consolidated Account Statement. Under the ‘Advisor’ section, you will see the ARN code of your distributor.
3. It is an alphanumeric code with 6 components. For example, AA 05 06 25 123456 8. They represent the alphabet, state code, month, year of registration, generated code and a checksum digit, respectively.

Who Can Apply for an ARN Number in a Mutual Fund?

If you are at least 18 years old, you can apply for an NISM exam, clear it and apply for the ARN number in a mutual fund at AMFI. The following are some entities that can apply for the number through the exam:

1. Apart from your own investments, if you are keen to become an individual distributor, you can take the NISM test and clear it to get the ARN code.
2. Independent Financial Advisors or IFAs must get the ARN code to start distributing mutual fund schemes and guide investment decisions.
3. As of 2025, there are more than 100 banks in India from the public, private and other sectors. Such banks provide regular mutual fund schemes, and their respective distributors must hold an ARN.
4. Fund distributors who are associated with stockbrokers apply for the NISM exam and get the ARN number in a mutual fund.
5. Corporate mutual fund distributors must apply for the ARN number to start distributing funds.

A Detailed Process to Apply for an ARN Number in a Mutual Fund

Beginning with the NISM exam, you must go through this 5-step process to apply for and get an ARN number:

1. Obtain the NISM Certification

   As the foremost step, you must clear the ‘NISM Series V-A: Mutual Fund Distributors Certification Examination’. Apply to the NISM portal with Aadhaar and PAN card details and photographs. You will get approval within 3 days and take the test at your preferred location.

2. Complete the Registration with AMFI

   Once you clear the NSIM exam, you get the certification that justifies you as a mutual fund distributor. To get the ARN number in a mutual fund, you must register with the AMFI. You must fill out an application form with documents that the CAMS facilitates in association with AMFI.

3. Document Submission

   At the Computer Age Management Services Pvt. Ltd., or CAMS, you must submit the application form with the following documents to fulfil a ‘Know Your Distributor’ process:

   • Provide a copy of your NISM certificate
   • Submit your ID proof, such as a copy of your Aadhaar card, driving licence, etc.
   • Submit a copy of your Voter ID card, passport, etc., as proof of address.
   • Recent passport-sized photographs.

4. Pay a Registration Charge

   You must also pay a certain amount as a fee to AMFI to get the ARN number in a mutual fund. For individuals, it starts from INR 3000. Depending on the applicant type, it goes up to INR 4,00,000.

5. Issuance Upon Verification

   The regulatory authorities verify the entire application for authenticity and ensure it complies with the regulatory rules. After verification, you get your ARN number.

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Key Benefits of the ARN Number in a Mutual Fund

After understanding what the ARN number in a mutual fund is, you must learn its benefits. ARN helps with regulatory compliance, accountability, and tracking the background of a distributor with accurate commission payouts. Here is a detailed view of these benefits:

1. Helps With Regulatory Compliance

   As of FY 2024 2025, there are about 2.75 lakh mutual fund distributors. The AMFI and SEBI track and audit the activities of the fund distributors. The ARN ensures careful oversight on such a vast scale of distributors to protect investor interest.

2. Establishes Accountability

   If you think from an investor perspective, your CAS holds the information about your fund distributor with their ARN. This standardises and simplifies mutual fund investments, aiding in tracking investments. Suppose you find 1,000 units getting misattributed in your CAS, and now you can reach out to your distributor to rectify this issue.

3. Transparency and Commission Payouts

   As an investor in a mutual fund, you can assess the background or track record of your distributor using the ARN number in a Mutual fund. For distributors, AMFI accurately assigns commissions to the distributor associated with each transaction.

How to Renew the ARN Number in a Mutual Fund?

The ARN code for a mutual fund distributor in India stays valid for 3 years, and such individuals must go through a NISM refresher course. The following are the means by which distributors can renew the ARN code:

1. As a distributor, you must visit the official website of the AMFI, submit your certificate of renewal course and pay a renewal fee. For individuals, it starts from INR 1500.
2. You can also courier or submit a copy of your certificate physically to an AMFI office. Pay a renewal fee using a demand draft or any other eligible payment form.
3. The authorities will review your renewal application, certificated and associated documents. Upon successful verification, they will provide you with an updated ARN number.

Conclusion

The ARN number in a mutual fund represents your distributor in the spectrum of mutual fund schemes. This ensures that your distributor is certified and has the necessary expertise to ensure an optimised return. If you are interested in following such a career, you must clear the NISM exam, obtain the certificate and get an ARN code to start fund distribution.

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Frequently Asked Questions

1. Who needs an ARN code?

In India, to distribute a mutual fund to investors legally, the ARN code is mandatory. Entities like fund distributors, agents, brokers, independent financial advisors, etc., need an ARN number.

2. How do I find my ARN number for a mutual fund?

You can simply visit the official AMFI website and access the search option there, and enter the details of your distributors. Also, you can check your CAS to locate the ARN number of your fund distributor.

3. Can an ARN code be transferred or assigned to another person?

No, an individual who clears the NISM exam and obtains the code can only hold it until its expiry. If you are a certified distributor, you cannot transfer it to another individual.

4. What happens if an ARN code expires?

You must appear for a NISM refresher course when the expiry of the ARN code is near. Submit the refresher certificate and pay the renewal fee to AMFI to get the code. However, after its expiry, you might need to again take the NISM registration test and obtain the code.